GOOD statement by Brett Herron,
GOOD: Secretary-General
If the City of Cape Town says you owe it money – be it for water, rates, fines, penalties or anything else – it has accorded itself the power to unilaterally deduct a portion of the debt from your pre-paid electricity purchases.
The City deducts between 30% and 90% of pre-paid electricity purchases without giving consumers the opportunity to dispute that they are in arrears or that an offence was committed giving rise to a fine or penalty.
- It does not need to prove the debt, fine or penalty;
- There is no court order that the alleged debt is in fact due;
- Consumers are not given the opportunity to dispute the debt, fine or penalty;
- There is no provision in the Electricity Regulation Act for the purchase of electricity to be used for debt collecting purposes; and
- Section 15 of the Electricity Regulation Act prescribes that, “a licensee may not charge a customer any other tariff and make use of provisions in agreements other than that determined or approved by the Regulator as part of its licensing conditions.”
In order to try and understand the basis for this debt-collecting practise GOOD submitted a PAIA application to the City of Cape Town requesting access to the City’s tariff application to NERSA for the last financial year 2021/22, and NERSA’s approved tariffs.
The City refused GOOD access to its NERSA application – citing “commercial” information that would “disadvantage” them. It did share the approved tariffs, which don’t appear to include any approved charge for debt recovery.
By forcing some consumers to pay more than others in return for the same quantity of electricity, the City effectively abrogates the national regulator’s role.
The City’s practise victimises and re-victimises poor and indigent families, in particular. Many are saddled with debts they have no hope of ever paying back. For them, the practical cost of electricity can be double the cost to members of the middle-class.
In September we met a disabled senior citizen whose water supply was totally disconnected, and who gets just two units of electricity for R10 to enable her to cook an evening meal before the lights go out. She cares for a young grandchild.
In November we met an elderly woman who receives the state pension of R1 890 a month. According to the City, she has an outstanding water bill of R37 000. She too can only afford an hour or two of electricity a day with her R10 purchase.
In the run-up to last month’s municipal elections GOOD vowed to put a stop to this cruel and evidently unlawful practise. The party has therefore approached the Office of the Public Protector to urgently investigate its legality.
In particular, GOOD has asked the Public Protector to investigate:
- The legality of a debt recovery process in the absence of a judgment and a warrant of execution;
- Whether the practise complies with the National Electricity Act and its tariff principles.
- Any other applicable legislation and/or regulations regarding the provision of a basic electricity supply and the deduction of funds from the purchase of units.
Media enquiries:
Brett Herron, GOOD Secretary General
Cell: 082 5183264
Email: bretth@forgood.org.za
Samkelo Mgobozi
Cell: 0792315977
Email: samm@forgodd.org.za